PRESS RELEASE
TYPHOON COMMENCES PRODUCTION IN DEEPWATER GULF OF MEXICO
BHP Billiton announces the first oil and gas production from the Typhoon
oilfield in the deepwater Gulf of Mexico.
The field started production on July 29, 2001, with gross production
expected to increase to 40,000 barrels per day of oil (bopd) and 60 million
standard cubic feet (mmscfd) of gas over the coming months, although actual
oil and gas production rates will depend on well performance. (BHP
Billiton's share is 50%.) The estimated commercial field life is between
five to eight years.
The Typhoon project has set a new standard for rapid development of
deepwater Gulf of Mexico fields. The project was completed in just over
three years, following its discovery in June 1998. The time from project
sanction to commissioning was approximately 18 months. Typhoon was also
completed safely, under the budgeted expenditure of US$128 million (BHP
Billiton share), and on schedule.
The Typhoon project represents BHP Billiton's first commercial development
resulting from its decision to focus exploration activities in potential
high margin areas in the deepwater Gulf of Mexico. The development delivers
early production and revenues, as well as technical expertise that is being
used to expedite the commercialisation of larger resources in the ultra-
deepwater Atwater Foldbelt.
The field is located in 640 metres of water in Green Canyon blocks 236 and
237, 160 kilometres off the coast of Louisiana. This area has been actively
explored and has established production and pipeline infrastructure. BHP
Billiton's equity share of the Typhoon development is 50 per cent with
Chevron U.S.A. Production Co. (operator) 50 per cent.
President and CEO BHP Billiton Petroleum Philip Aiken said: "This is a
tremendous achievement and marks another important step in the delivery of
our deepwater exploration strategy. Typhoon fits well into BHP Billiton's
broader Gulf of Mexico objectives and the early cash flows generated will
supplement the longer term, higher value potential activities."
The Typhoon development consists of subsea completion and tieback of the
four existing appraisal wells to a local host facility, based on the
Atlantia SeaStar mini tension leg platform (TLP). El Paso, through its oil
and gas pipeline subsidiaries, will transport the oil and gas to local
markets via connections to local infrastructure. The Typhoon field was
granted Deepwater Royalty Relief in December 2000 by the U.S. Minerals
Management Service, which allows for royalty exemption on the first 87.5
million barrels oil equivalent (mmboe) from the Typhoon field under certain
oil pricing market conditions.
The Typhoon facilities offer the potential to act as a production 'hub' for
the area. BHP Billiton has in excess of 30 blocks within a 40-kilometer
radius and a discovery in any of these blocks could potentially be tied back
to the Typhoon facility.
BHP Billiton has interests in existing producing assets in the Gulf of
Mexico in Green Canyon/Ewing Bank/West Cameron (FY2000 BHP production share
was 4,655 bpd liquid and 40 mmscfd gas). The Company also completed the
purchase of 4.95 per cent of the Chevron-operated Genesis field in January
2000. Genesis is located in Green Canyon block 205 and is currently
producing at rate of approximately 73,000 barrels of oil equivalent per day
(boepd) gross, with approximately 3,600 boepd net to BHP Billiton.
The Atwater Foldbelt appraisal of the Mad Dog and Atlantis discoveries is
continuing as are plans for progressing BHP Billiton's exploration potential
in the Atwater Valley, Walker Ridge and Mississippi Canyon lease areas.  Mad
Dog is on schedule for sanction during calendar year 2001. The Atlantis 3
appraisal well is currently being drilled and a Mad Dog 4 appraisal well is

to spud in the third quarter of 2001.
Further information can be found on our Internet site:
http://www.bhpbilliton.com or contact:
Australia
Dr. Robert Porter, Investor Relations
Tel: + 61 3 9609 3540 Mobile: +61 419 587 456 email:
Robert.Porter@bhpbilliton.com
Mandy Frostick, Media Relations
Tel: +61 3 9609 4157
Mobile: +61 419 546 245 email:
Mandy.J.Frostick@bhpbilliton.com
United Kingdom
Marc Gonsalves, Investor Relations & Communications
Tel: +44 20 7747 3956
Mobile: +44 7768 264 950
email: Marc.Gonsalves@bhpbilliton.com
South Africa
Michael Campbell, Investor & Media Relations
Tel: +27 11 376 3360
Mobile: +27 82 458 2587
email: Michael.J.Campbell@bhpbilliton.com
United States
Francis McAllister, Investor Relations
Tel: +1 713 961 8625
Mobile: +1 713 480 3699
email: Francis.R.McAllister@bhpbilliton.com